This content is provided through a paid partnership between Moving2Canada and Scotiabank.
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When you move to Canada, there may be some financial hiccups along the way. Maybe it’s renting in an area of town you migh have chosen if you’d known the city better. Or perhaps you’ll accidentally order something online from a brand that ends up being lower quality than you expect.
While it’s inevitable that you’ll learn some things along the way -- there are also some mistakes you can avoid. We’ve made this list of common mistakes, and how to avoid them, so you can learn from the experiences of others before you.
8 Financial Mistakes to Avoid When Moving to Canada
1. Not Planning Your Budget
Budgeting is the first rule to financial success, and not having a budget can lead to unexpected financial setbacks, especially when settling into a new country. Before you arrive in Canada, create a budget that outlines your fixed costs, financial goals, anticipated expenses, and unanticipated expenses.
2. Overlooking the Importance of Building Your Credit Score
A good credit history is crucial in Canada, as it affects your access to financial services and interest rates. One way to start building your credit history is with a credit card designed for newcomers and by regularly paying it off to gradually build a healthy credit score.
3. Not Maintaining a Good Credit History
Building credit is just the first step. After that, the trick is to maintain it. Consistently on-time payments can indicateyou’re a low-risk borrower. This can lead to better financial opportunities.
4. Not Reading Terms and Conditions
Always read and understand the terms and conditions of contracts like cell phones, insurance, banking products, or your lease agreement. Failure to adhere to these terms may result in unforeseen penalties and expenses, so take your time to make informed decisions.
Scotiabank advisors can help you understand your financial options, create a personalized budget, and guide you towards financial success.
5. Avoiding Credit Card Debt
While credit cards are useful for building credit, accumulating high levels of debt due to overspending can undermine your financial goals.
6. Failing to File Taxes
Filing taxes is mandatory in Canada, and failing to file can lead to missed government benefits and potential fines or interest charges.
7. Not Budgeting Properly for Your Move
Moving costs money, and international moves can be costly. Make sure your budget calculations are accurate so you start your Canadian journey on the right financial footing.
8. Not Asking Enough Questions
You may not even know what you don’t know, so don’t hesitate to seek professional advice. Canadian banks like Scotiabank offer comprehensive financial planning services and multilingual support.
We hope these tips help you avoid common financial missteps and feel more confident in your financial decisions.
Warm wishes,
The Moving2Canada team, in partnership with Scotiabank
Legal Disclaimer
This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
